GigOptix (GIG) Stock Falls, TheStreet Downgrades

NEW YORK (TheStreet) -- Shares of GigOptix (GIG) are down 8% to $2.22 in afternoon trading on Wednesday following the release of the company's fourth quarter results earlier this week.

The San Jose, CA-based fabless semiconductor manufacturer reported fourth quarter earnings and revenue that were in-line with analysts expectations for the period. The company had fourth quarter net income of $333,000 after reporting a net loss in the year ago period.

The company earned 5 cents per share on an adjusted basis on revenue of $11.1 million. The company also guided its full year 2016 and first quarter revenue in line with analyst estimates.

However, today TheStreet Ratings downgraded the company's stock to "hold" from "buy" while also lowering its letter grade to C from B-. TheStreet said that the company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, it also found that the company's return on equity has been disappointing.